Starting with Innovation Programs
Participating in a corporate innovation program is an excellent starting point for startups, as it offers visibility, access to resources, mentorship, and a genuine opportunity to collaborate with large corporations. However, the real challenge for startups begins when they aim to transition from pilot projects to becoming suppliers, adhering to corporate processes, regulations, and administrative requirements.
From Pilot to Consolidation
While these open innovation programs help create projects addressing specific problems, the true challenge for startups lies in becoming established suppliers. Alejandro Hernández, the CEO of Kran Nanobubble in Mexico, highlighted that “the real difficulty isn’t conducting the pilot; it’s navigating the subsequent processes to become a supplier. There are unknown timelines, administrative costs, security concerns, and staffing requirements.”
The Importance of Processes
Mónica Campos, the digital transformation leader at Nestlé Mexico, explained during her Chilean Innovation Tech Summit speech that corporations have well-defined problems, which can be economic, operational, or consumer-focused. Addressing these issues internally may require significant budget and time investment. Consequently, corporations turn to startup innovation due to its rapid growth model, enabling quick pilot implementation.
Campos emphasized that organizations always have internal processes and governmental requirements for startups to become suppliers, especially if they are not Mexican. For instance, Kran Nanobubble faced administrative hurdles requiring IMSS registration, which delayed their collaboration.
Prioritizing Regulatory Compliance
Irene Kamann, Sodexo’s supply chain director, concurred with the experts and pointed out that each country has distinct regulations. To conduct business, it’s crucial to understand and apply these regulations.
Kamann recalled instances where entrepreneurs successfully conducted pilots with the company but faced complications when attempting to become suppliers due to insufficient records, a process taking six months to a year.
Key Questions and Answers
- What is the initial step for startups to collaborate with corporations? Participating in corporate innovation programs is an excellent starting point.
- What challenges do startups face when transitioning from pilot projects to becoming suppliers? Startups must navigate complex corporate processes, regulations, and administrative requirements.
- Why is understanding and complying with regulations crucial for startups aiming to become corporate suppliers? Each country has distinct regulations, and failure to understand and apply them can hinder business opportunities.
